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Registered number:
FOR THE YEAR ENDED 31 JULY 2025
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THAT BOURNEMOUTH COMPANY LIMITED
COMPANY INFORMATION
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THAT BOURNEMOUTH COMPANY LIMITED
CONTENTS
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THAT BOURNEMOUTH COMPANY LIMITED
GROUP STRATEGIC REPORT
FOR THE YEAR ENDED 31 JULY 2025
The directors present their strategic report of the company and the group for the year ended 31 July 2025.
The Group's activities consist primarily of the operation of 2 hotels plus an associated car park in Bournemouth as well as the rental of luxury apartments held for resale, also located in Bournemouth. The hotels operate under the Hilton and Hampton by Hilton brands.
During the year to 31 July 2025 the group saw trading at its hotels and car park into their tenth year. The businesses achieved good occupancy and daily rates. After the year end the group entered into a sale and leaseback of its Hampton by Hilton property and its adjacent car park. The transaction completed on 14 July 2026. The £18.5m combined sales proceeds have been applied to reducing outstanding HSBC bank indebtedness to £10m, with a new HSBC loan agreement dated 14 July 2026 being repayable on 14 July 2031.
Most apartments are either sold or subject to lettings. The residential facility was renewed post year end, in March 2026, for another 5 years. The group's day-to-day hotel and car park operations are cash flow positive such that short term liquidity is of limited concern. The directors regularly review the maturity of borrowings and refinancing options are considered to ensure that there is sufficient liquidity within the group.
The group has a bank facility with HSBC. The group is exposed to market movements on floating interest rate borrowings. The group manages its floating interest rate risk by using interest rate hedging on the vast majority of its long-term floating-rate borrowings.
The group operates in a competitive regional market with other branded competition and there is a risk that competitor actions could have a detrimental impact on it. The group relies on its experienced hotel management service provider, Michels and Taylor Limited to review the market continually and to develop strategies that are regularly reviewed in line with competitor decisions and actions. Health and safety The group is exposed to health and safety risks whilst its employees work, customers stay and others visit the group's properties. The group relies on its experienced hotel management service providers to manage these risks from day-to-day, including the implementation of training, preventative maintenance and reporting regimes. The group's hotels comply with Hilton Hotels' health and safety brand standards. Health and safety is regularly reviewed with the hotel management services providers. The group also works with its car park operator regarding health and safety at its car park. The apartments benefit from an EWS1 Certificate from a qualified fire engineer, issued in September 2022 following an invasive inspection of the external wall systems. The certificate confirms a low safety risk attaching to the external wall systems for the building shared by the apartments and the Hilton Hotel. The apartments are registered with the Building Safety Regulator. Information Technology The group's hotels and car park are reliant on information technology for their day-to-day operations, so the failure of core systems would significantly disrupt trading and its operations and adversely impact performance. In addition, there is a risk that customer data, including payment card data, could be compromised. The group relies on its experienced hotel management service providers to manage these risks from day-to-day for the hotels, and on Worldpay - an experienced provider of international secure payment services - to manage these risks on its behalf.
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THAT BOURNEMOUTH COMPANY LIMITED
GROUP STRATEGIC REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
2025 2024
£000 £000 Revenue 12,886 13,760 EBITDA 1,120 1,026 As the hotels and car park entered their tenth year of trading and performance has been positive with good occupancy and rates being achieved compared to their peers, and the hotels maintaining market leadership in their respective segments of the local market. However, in common with most hotels, the cost of living crisis has impacted leisure demand at the same time as increasing operating costs, so operating profits were impacted during the year. During the year end the trend started to reverse. The group's food and beverage businesses, including its meetings and events business, trades predominantly from That Bournemouth Big Hotel Limited's Hilton Hotel. Trading was satisfactory in the face of a competitive market. The car park continues to benefit from the strong occupancy of the two hotels, with steady operating profitability.
The directors are of the opinion that its Bournemouth hotels remain well placed to prosper in the future.
The financial statements have been prepared on a going concern basis. The directors have reviewed and considered the relevant information including future trading projections and available banking facilities in making that assessment.
This report was approved by the board and signed on its behalf.
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THAT BOURNEMOUTH COMPANY LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 JULY 2025
The directors present their report and the financial statements for the year ended 31 July 2025.
The directors are responsible for preparing the group strategic report, the directors' report and the consolidated financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies for the group's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and the group and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and the group and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The principal activity of the group includes operating hotels and associated businesses and developing properties for residential sale.
The loss for the year, after taxation, amounted to £3,379,873 (2024: loss £3,151,888).
No dividends will be distributed for the year ended 31 July 2025 (2024: £Nil).
The directors who served during the year were:
made during the year and remain in force at the date of this report.
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THAT BOURNEMOUTH COMPANY LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 JULY 2025
In March 2026, a subsidiary, That Bournemouth Penthouses Limited's bank loan was renewed and the term extended for a further 5 years.
As noted in notes 2.3 and 18, two Group companies completed the sale and lease back of their respective properties on 14 July 2026. Sales proceeds of £18.5m were used to reduce the group’s HSBC facility. The Group’s HSBC loan reduced to £10m as a result of these transactions, with a new £10m HSBC facility expiring 14 July 2031 being entered into at the same time.
The auditor, Cooper Parry Group Limited, will be proposed for reappointment in accordance with section 485 of the Companies Act 2006.
This report was approved by the board and signed on its behalf.
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THAT BOURNEMOUTH COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THAT BOURNEMOUTH COMPANY LIMITED
We have audited the financial statements of That Bournemouth Company Limited (the 'parent company') and its subsidiaries (the 'group') for the year ended 31 July 2025, which comprise the consolidated profit and loss account, the consolidated statement of comprehensive income, the group and company balance sheet, the group and company statement of changes in equity, the consolidated statement of cash flows, the consolidated analysis of net debt and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the group in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the group's or the parent company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
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THAT BOURNEMOUTH COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THAT BOURNEMOUTH COMPANY LIMITED (CONTINUED)
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the group strategic report and the directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the group strategic report and the directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the group and the parent company and its environment obtained in the course of the audit, we have not identified material misstatements in the group strategic report or the directors' report.
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THAT BOURNEMOUTH COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THAT BOURNEMOUTH COMPANY LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these Group financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates, and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. We discussed with the directors the policies and procedures in place regarding compliance with laws and regulations. We discussed amongst the audit team the identified laws and regulations, and remained alert to any indications of non-compliance. During the audit we focused on laws and regulations which could reasonably be expected to give rise to a material misstatement in the financial statements, including, but not limited to, the Companies Act 2006 and UK tax legislation. Our tests included agreeing the financial statement disclosures to underlying supporting documentation and enquiries with management. Our procedures in relation to fraud, included but were not limited to: inquires of management whether they have any knowledge of any actual, suspected or alleged fraud, and discussions amongst the audit team regarding risk of fraud such as opportunities for fraudulent manipulation of financial statements. We determined that the principal risks related to posting manual journal entries to manipulate financial performance and management bias through judgements in accounting estimates and challenged the assumptions and judgements made by management in its significant accounting estimates. We also addressed the risk of management override of internal controls, including testing journals and evaluating whether there was evidence of bias by the directors that represented a risk of material misstatement due to fraud. Our tests included agreeing the financial statement disclosures to underlying supporting documentation. Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
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THAT BOURNEMOUTH COMPANY LIMITED
INDEPENDENT AUDITOR'S REPORT TO THE MEMBERS OF THAT BOURNEMOUTH COMPANY LIMITED (CONTINUED)
This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditor
Abbey Square
Davidson House
RG1 3EU
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THAT BOURNEMOUTH COMPANY LIMITED
CONSOLIDATED PROFIT AND LOSS ACCOUNT
FOR THE YEAR ENDED 31 JULY 2025
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THAT BOURNEMOUTH COMPANY LIMITED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 JULY 2025
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THAT BOURNEMOUTH COMPANY LIMITED
REGISTERED NUMBER: 06880871
CONSOLIDATED BALANCE SHEET
AS AT 31 JULY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 36 form part of these financial statements.
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THAT BOURNEMOUTH COMPANY LIMITED
REGISTERED NUMBER: 06880871
COMPANY BALANCE SHEET
AS AT 31 JULY 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf by:
The notes on pages 16 to 36 form part of these financial statements.
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THAT BOURNEMOUTH COMPANY LIMITED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2025
COMPANY STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 JULY 2025
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THAT BOURNEMOUTH COMPANY LIMITED
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 JULY 2025
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THAT BOURNEMOUTH COMPANY LIMITED
CONSOLIDATED ANALYSIS OF NET DEBT
FOR THE YEAR ENDED 31 JULY 2025
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
That Bournemouth Company Limited is a private company, limited by shares, registered in England and Wales. The company's registered number and registered office address can be found on the company information page.
2.Accounting policies
These financial statements have been prepared in accordance with FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland" ("FRS 102") and the requirements of the Companies Act 2006.
The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest pound. The financial statements have been prepared under the historical cost convention, modified to include the revaluation of certain financial instruments at fair value. The principal accounting policies adopted are set out below.
The company has taken advantage of the exemption allowed under section 408 of the Companies Act 2006 and has not presented its own profit and loss account in these financial statements.
The following principal accounting policies have been applied:
The consolidated financial statements present the results of the company and its own subsidiaries ("the group") as if they form a single entity. Intercompany transactions and balances between group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the balance sheet, the acquiree's identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at the acquisition date. The results of acquired operations are included in the consolidated profit and loss account from the date on which control is obtained. They are deconsolidated from the date control ceases.
All intra-group transactions, balances and unrealised gains on transactions between group companies are eliminated on consolidation. Unrealised losses are also eliminated unless the transaction provides evidence of an impairment of the asset transferred.
All financial statements are made up to 31 July 2025. Where necessary, adjustments are made to the financial statements of subsidiaries to bring the accounting policies used into line with those used by other members of the group.
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
The Group made a loss of £3,379,873 in the year (2024: loss of £3,151,888) and is in a net liability position of £3,608,610 (2024: net liabilities of £1,305,698). The net liabilities of £3,608,610 as at 31 July 2025 are stated inclusive of a loan from a director and principal shareholder of £15,707,329. It has been confirmed that this loan will not be called for repayment for a period of at least 12 months from the approval of these Financial Statements.
The group was not in compliance with some financial covenants attaching to its £27.5m loans from HSBC, both during the year and after the year end. However, since the year end, sale and leaseback agreements were completed by the group relating to one of its hotel properties and its car park. Sales proceeds of £18.5m were used to reduce the group’s HSBC facility. The Group’s HSBC loan reduced to £10m as a result of these transactions, with a new £10m HSBC facility expiring 14 July 2031 being entered into at the same time, as such compliance was restored. The price achieved is in excess of the carrying value of both properties within the companies’ respective Financial Statements. The Group has support confirmed by the majority shareholder and director of the company. This confirmation of support has been made to the ultimate parent company and all subsidiaries and has been given for a period of at least twelve months from approval of these financial statements. Based on the above, the directors have concluded that they can continue to adopt a going concern basis in preparing the Group's annual report and accounts. Revenue from sale of services is recognised on the date when the service is provided and revenue from the sale of property is recognised at the date of completion. Other income is recognised on receipt.
Intangible assets acquired are recognised at cost and are subsequently measured at cost less accumulated amortisation and accumulated impairment losses.
Amortisation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases: Intangible assets - 12 years straight line
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Depreciation is provided at rates calculated to write off the cost less estimated residual value of each asset over its expected useful life.
Depreciation is provided on the following basis:
Finance costs on the land and buildings up to the date of completion have been capitalised.
At each reporting period end date, the group reviews the carrying amounts of its tangible and intangible assets to determine whether there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where it is not possible to estimate the recoverable amount of an individual asset, the company estimates the recoverable amount of the cash-generating unit to which the asset belongs.
The group has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.
Financial instruments are recognised in the group's balance sheet when the group becomes party to the contractual provisions of the instrument. Basic financial assets Basic financial assets, which include debtors and cash and bank balances, are initially measured at
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.
Classification of financial liabilities Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the group after deducting all of its liabilities. Basic financial liabilities Basic financial liabilities, including creditors, bank loans and loans from fellow group companies, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised. Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method. Other financial liabilities Derivatives, including interest rate swaps, are not basic financial instruments. Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured at their fair value. Changes in the fair value of derivatives are recognised in finance costs or finance income as appropriate. Interest rate swap fair values at respective period ends are based on independent, qualified valuers' information.
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
Current or deferred taxation assets and liabilities are not discounted. Current tax is recognised at the amount of tax payable using the tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date. Timing differences arise from the inclusion of income and expenses in tax assessments in periods different from those in which they are recognised in financial statements. Deferred tax is measured using tax rates and laws that have been enacted or substantively enacted by the year end and that are expected to apply to the reversal of the timing difference. Unrelieved tax losses and other deferred tax assets are recognised only to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits.
Transactions in currencies other than pounds sterling are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in the consolidated profit and loss account.
Assets obtained under hire purchase contracts or finance leases are capitalised in the balance sheet. Those held under hire purchase contracts are depreciated over their estimated useful lives. Those held under finance leases are depreciated over their estimated useful lives or the lease term, whichever is the shorter.
The interest element of these obligations is charged to the consolidated profit and loss account over the relevant period. The capital element of the future payments is treated as a liability.
The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.
The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.
Equity instruments issued by the group are recorded at the proceeds received, net of direct issue costs.
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
2.Accounting policies (continued)
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods. Key sources of estimation uncertainty The estimates and assumptions which have a significant risk of causing a material adjustment to the carrying amount of assets and liabilities are as follows: Discounting of director loans An estimated internal rate of return of 6.86% has been applied to discount the interest-free director's loan based on a reasonable market rate of interest, and the loan term is assumed to be between 1-2 years, for the purposes of determining the fair value adjustment each year. Depreciation Due to the significance of the depreciation charged in the financial statements, the directors consider this to be a crucial accounting judgement. An assessment is made of the useful economic lives, taking into account residual values of the tangible assets, based on the directors' knowledge and industry experience. There are periodic reviews to determine if depreciation rates are still appropriate and whether any impairment is needed.
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
3.Judgements in applying accounting policies (continued)
The group's stock includes apartments which are held for sale and included at the lower of costs and net realisable value. The directors have reviewed the year end stock by reference to market data and are satisfied that no impairment is necessary. Recoverability of intercompany balances (company only) and related company balances The group has balances due from related companies connected by common ownership. Management are of the opinion that these balances are fully recoverable and therefore no provision has been made against these balances by virtue of shareholder support which has been confirmed in writing. Deferred tax assets The group recognises deferred tax assets to the extent which it believes the future tax will be payable.
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 23
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 24
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
11.Taxation (continued)
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 26
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 27
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
13.Tangible fixed assets (continued)
Page 28
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 29
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 30
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 31
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
The director loan has been provided by R S Kelvin . The loans are interest free but under FRS 102 an imputed rate of interest has been applied and is shown as an interest expense in the profit and loss accounts and as a Capital Contribution Reserve within the balance sheet. The director has provided written confirmation that the loan will not be called for repayment within 12 months of the date of approving these financial statements. The loan term is assumed to be between 1-2 years, for the purposes of determining the fair value adjustment each year.
Page 32
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Page 33
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Capital contribution reserve
Profit and loss account
The company is a member of a VAT group and is jointly and severally liable for the VAT liabilities of all other members of the group. At the reporting date, the company has confirmed that all VAT liabilities have been paid as they fall due, and the directors consider the likelihood of the company being required to settle the liabilities of other group members to be feasible but not probable. As such, no provision has been recognised. Due to the nature of the arrangement, it is not practicable to quantify the potential financial effect.
Page 34
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
Total pension costs in the year were £57,148 (2024: £62,402). At the year end £9,928 (2024: £15,081) was outstanding and included in creditors.
A defined contribution pension scheme is operated for all qualifying employees. The assets of the scheme are held separately from those of the group in an independently administered fund.
27.Financial commitments, guarantees and contingent liabilities
The bank loans are secured by a debenture dated January 2019 and February 2020 over all leasehold and freehold property and by a fixed and floating charge over all assets of the group.
There is a composite company unlimited multilateral guarantee dated 4 January 2019 given by That Bournemouth Company Limited, That Bournemouth Big Hotel Limited, That Bournemouth Little Hotel Limited, That Bournemouth Car Park Limited, That Bournemouth Street Bar Limited and That Bournemouth H2 Limited. The maximum group exposure is £32,000,000.
Creditors due in more than one year include £15,707,329 (2024: £12,911,183), at discounted fair value, relating to loans with R S Kelvin CBE, director. The movements in the year are £1,076,961 (2024: £955,428) of discounting in the year and further loan of £2,917,680 (2024: repayments of £933,340). The book value of this loan as at the year end was £16,784,292 (2024: £13,866,612).
A personal guarantee of £4.2 million has been given, by a director, in respect of the group bank loans.
Page 35
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THAT BOURNEMOUTH COMPANY LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 JULY 2025
As noted in notes 2.3 and 18, on 14 July 2026, sale and leaseback agreements were completed by the group relating to one of its hotel properties and its car park, that realised combined proceeds of £18.5m. The proceeds were used to reduce the group’s HSBC facility. The Group’s HSBC loan reduced to £10m as a result of these transactions, with a new £10m HSBC facility expiring 14 July 2031 being entered into at the same time as the sale and leaseback transactions completed.
The ultimate controlling party is R S Kelvin CBE, director and majority shareholder.
Included in financing activities are non-cash movements of £94,485 (2024: £356,699) in respect of the fair value adjustment on derivatives.
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